Interesting article about Oil

wanghong

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8 h* V$ K1 \: ?! \: d: k" z; n6 E/ PBelow is an Interesting article I found, which says that.....Do not
% W+ A- A; j3 b2 ?+ w$ Rexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
# F/ N& ]  \' kthese oil producer will go bankrupt or out of the business even if
  u# P$ w0 S0 U- Zcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
, x% S) j0 }+ uin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.


4 {* V! r9 }3 G5 `7 `6 O% U2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
2 ~  F& A/ p7 C* n% f: D$ O  lfuel is being produced from many plants and algae. The production
2 J2 ]  ^9 B0 zpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
: U7 L3 `; \* a! }are now selling their used oil to bio-diesel producers. Every pork,
$ ~  P+ i& ?. ^6 l% v1 Z' L8 ~' t! I2 qcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
! p1 N& q4 q: H9 P/ c: oproducing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
1 ?3 @$ k! K8 k0 j0 e+ Vexpected to be built in the future. Much of the energy they produce
/ A- c: u% \' d/ l( ?will replace oil.
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7. Every company in any form of transportaion business is replacing
" w/ i/ a; I; v5 Q" Colder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
0 C: [- Z9 v! B2 t$ d3 nare experiencing 20% to 25% better fuel econony with the new
' O. q0 ]# Z* n5 X- wequipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

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8. Cities and counties throughout the US are selling the rights to
" p- W' q) p  \6 k7 {capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.


' {2 z( O+ f' z, {7 N9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.

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, c9 y2 Y/ y# x- ~5 a; ^5 V2 N10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
, Q: K! j+ B' K9 Eto control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
5 D, p& u/ L% E- a9 F( mvalue .....
, [1 I1 l, R' BIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


6 N; i: R6 t' A+ J0 R6 K9 Q- \The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only